The Consumer Financial Protection Bureau (CFPB) announced Wednesday that it plans to delay the effective date of the Know Before You Owe mortgage rule spanning the new integrated disclosure documents until October 1, 2015.
In a written statement, the CFPB said it will be issuing a proposed amendment to delay the effective date of the rule, also known as the TILA-RESPA Integrated Disclosure rule (TRID), just weeks after the agency said it would implement a “grace period” for mortgage services striving to comply with the regulations.
“We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks,” the CFPB said in the written statement Wednesday. “We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at this time.”
Originally slated to take effect August 1, TRID has stirred up controversy among various mortgage industry stakeholders as well as lawmakers, who recently have urged the CFPB to implement a “hold harmless period” as part of its determination of whether or not mortgage servicers are making “good-faith efforts” to comply with the rule once it takes effect.
The CFPB said the public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.
Written by Jason Oliva